Legal Advisory June 15, 2026

Understanding RERA: A Guide for High-Net-Worth Investors

For any homebuyer or property investor in India, the Real Estate (Regulation and Development) Act, 2016 (RERA) is a game-changer. Especially for high-ticket property purchases in locations like Thane, RERA has brought in transparency, accountability, and security.

1. Guarded Escrow Accounts

RERA mandates that developers deposit 70% of project collections into a dedicated escrow account. This money can only be utilized for construction and land costs of that specific project, eliminating the historic issue of fund diversion to other projects.

2. Accurate Carpet Area Definition

Before RERA, builders used ambiguous terms like "super built-up area" to charge buyers. Now, developers must explicitly sell and display properties based on net "carpet area," making it easy to compare price per square foot across luxury projects.

3. Right to Information

As an investor, you have the right to view all updates, sanctions, layout plans, and completion timelines directly on the MahaRERA portal. It ensures you know exactly what you are paying for and when it will be delivered.